Businesses feel underprepared for MTD for VAT deadline

Nearly two-thirds of businesses believe that tax digitalisation is a good idea but need more support with their plans ahead of MTD for VAT coming into force according to research from KPMG.

The firm asked 1 000 businesses about their attitude to MTD and the 2019 deadline to comply with the new VAT legislation. The results showed that:

• 64% said it is a good idea but they need more support;
• almost a fifth (19%) said it offers their business no benefit;
• 12% were supportive and ready for the deadline; and
• 5% said it would be damaging to their business.

Chris Downing tax partner at KPMG said: ‘Although 98% of VAT-registered businesses already file VAT returns electronically MTD will involve significant changes to their processes. For example keeping digital records maintaining a digital audit trail of all business transactions and implementing new software to submit their VAT returns digitally.’

HMRC has...